Senate Bill S7589A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7589
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 30, 2023
                                ___________
 
 Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general municipal law, in  relation  to  authorizing
   cities  and  towns,  except a city with a population of one million or
   more, to establish community housing funds; and to amend the tax  law,
   in  relation  to  authorizing  cities  and towns, except a city with a
   population of one million or more, to impose a  real  estate  transfer
   tax with revenues therefrom to be deposited in such funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 6-w to read as follows:
   §  6-W.  COMMUNITY  HOUSING  FUND.  1.  DEFINITIONS.  AS  USED IN THIS
 SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE  THE  FOLLOWING  MEAN-
 INGS:
   (A)  "CITY  OR  TOWN" MEANS A CITY, EXCEPT A CITY WITH A POPULATION OF
 ONE MILLION OR MORE, OR A TOWN.
   (B) "COMMUNITY HOUSING" MEANS A PRIMARY RESIDENTIAL  PROPERTY  FOR  AN
 ELIGIBLE  INDIVIDUAL.  THE GOVERNING BODY SHALL ESTABLISH, BY LOCAL LAW,
 PURCHASE PRICE LIMIT FOR COMMUNITY HOUSING, PROVIDED  THAT  LIMIT  SHALL
 NOT EXCEED ONE HUNDRED FIFTY PERCENT OF THE PURCHASE PRICE LIMITS ESTAB-
 LISHED  BY  THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST RATE LOAN
 PROGRAM IN NON-TARGET  CATEGORIES  FOR  THE  COUNTY  IN  EFFECT  ON  THE
 CONTRACT  DATE  FOR  THE  SALE OF SUCH PROPERTY. COMMUNITY HOUSING SHALL
 INCLUDE APARTMENTS THAT ARE ACCESSORY TO A LEGALLY ESTABLISHED  RESIDEN-
 TIAL OR COMMERCIAL USE.
   (C)  "BOARD"  MEANS THE ADVISORY BOARD CREATED PURSUANT TO SUBDIVISION
 SIX OF THIS SECTION.
   (D) "FUND" MEANS THE COMMUNITY HOUSING  FUND  AUTHORIZED  PURSUANT  TO
 SUBDIVISION TWO OF THIS SECTION.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11023-01-3
 S. 7589                             2
              

 
   (E)  "FIRST-TIME  HOMEBUYER"  MEANS AN ELIGIBLE INDIVIDUAL WHO HAS NOT
 OWNED A PRIMARY RESIDENTIAL PROPERTY AND IS NOT MARRIED TO A PERSON  WHO
 HAS  OWNED  A RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD PRIOR TO
 HIS OR HER PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY,  AND  WHO  DOES
 NOT OWN A VACATION OR INVESTMENT HOME.
   (F)  "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
 TOWNHOUSE, OR CONDOMINIUM, INCLUDING ACCESSORY APARTMENTS.
   (G) "ELIGIBLE INDIVIDUAL" SHALL BE DEFINED BY THE GOVERNING  BODY,  BY
 LOCAL  LAW,  PROVIDED  THAT  THE  DEFINITION OF HOUSEHOLD INCOME IN SUCH
 LOCAL LAW SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE INCOME  LIMITS  AS
 ESTABLISHED  BY  THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST RATE
 LOAN PROGRAM IN NON-TARGET CATEGORIES FOR THE COUNTY IN  EFFECT  ON  THE
 CONTRACT DATE FOR THE SALE OF SUCH PROPERTY.
   (H) "GOVERNING BODY" MEANS A CITY COUNCIL OR TOWN BOARD.
   2.  FUND  AUTHORIZED. CITIES AND TOWNS ARE AUTHORIZED TO ESTABLISH, BY
 LOCAL LAW, A COMMUNITY HOUSING FUND, PURSUANT TO THE PROVISIONS OF  THIS
 SECTION.    DEPOSITS  INTO  THE  FUND  MAY INCLUDE REVENUES OF THE LOCAL
 GOVERNMENT FROM WHATEVER SOURCE, INCLUDING BUT NOT LIMITED TO:  (A)  ALL
 REVENUES  FROM  THE  SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY
 SUBDIVISION TWO OF SECTION ONE THOUSAND FIVE HUNDRED SEVENTY-SIX OF  THE
 TAX  LAW;  (B)  ALL PROCEEDS FROM ANY INDEBTEDNESS OR OBLIGATIONS ISSUED
 PURSUANT TO THE LOCAL FINANCE  LAW  FOR  COMMUNITY  HOUSING  OPPORTUNITY
 PURPOSES AS AUTHORIZED IN SUBDIVISION THREE OF THIS SECTION; (C) GENERAL
 FUND  BALANCES  OR  SURPLUSES;  (D)  ANY  PROCEEDS RECEIVED BY THE LOCAL
 GOVERNMENT FROM THE SALE OR RENTAL OF COMMUNITY  HOUSING  PRODUCED  FROM
 REVENUES  OF  THE  FUND;  (E)  THE  REPAYMENT  OF  ANY LOANS ISSUED FROM
 PROCEEDS OF THE FUND; (F) ANY GIFTS OF INTERESTS IN LAND OR  FUNDS;  AND
 (G) ANY STATE OR FEDERAL GRANTS RECEIVED BY THE CITY OR TOWN FOR PROVID-
 ING AFFORDABLE HOMES.
   3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
 TO  SUBDIVISION  TWO OF THIS SECTION SHALL BE UTILIZED FOR THE FOLLOWING
 PURPOSES:
   (A) THE PROVISION OF FINANCIAL ASSISTANCE TO FIRST-TIME HOMEBUYERS WHO
 ARE RESIDENTS OF THE CITY OR TOWN FOR THE PURCHASE OF A FIRST HOME. SUCH
 FINANCIAL ASSISTANCE MAY BE IN THE FORM OF A GRANT OR A  LOAN  AND  SUCH
 PROGRAM SHALL MEET THE FOLLOWING CRITERIA:
   (1)  A  CITY OR TOWN MAY PROVIDE FINANCIAL ASSISTANCE FOR THE PURCHASE
 OF A FIRST HOME TO A FIRST-TIME HOMEBUYER WHO IS A RESIDENT OF THE  CITY
 OR  TOWN  OR WHO IS EMPLOYED IN THE CITY OR TOWN. A RESIDENT OF THE CITY
 OR TOWN SHALL INCLUDE A PERSON WHO IS CURRENTLY A RESIDENT OF  THE  TOWN
 OR A NON-RESIDENT WHO HAS BEEN A RESIDENT WITHIN THE PAST FIVE YEARS.
   (2)  SUCH  FINANCIAL  ASSISTANCE SHALL NOT EXCEED FIFTY PERCENT OF THE
 PURCHASE PRICE OF THE HOME.
   (3) IF SUCH FINANCIAL ASSISTANCE IS IN THE FORM OF A LOAN,  SUCH  LOAN
 SHALL  BE  REPAYABLE TO THE CITY OR TOWN PURSUANT TO THE TERMS AGREED TO
 BETWEEN THE RECIPIENT AND THE CITY OR TOWN, PROVIDED THAT ANY LOAN SHALL
 BE FULLY REPAID BY THE RECIPIENT UPON THE RESALE OF THE HOME.
   (4) FOR THE PURPOSES OF CALCULATING CITY OR  TOWN  REAL  PROPERTY  TAX
 LIABILITY  FOR  SUCH  PROPERTY, ONLY, THE DOLLAR AMOUNT OF ANY FINANCIAL
 ASSISTANCE FOR THE PURCHASE OF A FIRST HOME MADE BY  THE  CITY  OR  TOWN
 PURSUANT  TO  THIS  SECTION  SHALL BE SUBTRACTED FROM THE FULL EQUALIZED
 ASSESSED VALUE OF SUCH PROPERTY.
   (5) ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE REPAYMENT OF  A
 LOAN SHALL BE DEPOSITED IN THE FUND.
 S. 7589                             3
 
   (6)  A  CITY  OR  TOWN  MAY PROVIDE FINANCIAL ASSISTANCE FOR COMMUNITY
 HOUSING IN CONJUNCTION WITH A PUBLIC/PRIVATE  PARTNERSHIP  FOR  EMPLOYER
 ASSISTED HOUSING.
   (B)  THE  ACTUAL  PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
 INDIVIDUALS BY THE CITY OR TOWN;
   (C) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR  SALE  TO  ELIGIBLE
 INDIVIDUALS  IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE
 PRIVATE PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF  THE  NEW
 YORK  STATE  AFFORDABLE  HOUSING  CORPORATION AND THE PROVISIONS OF THIS
 SECTION;
   (D) THE  ACTUAL  PRODUCTION  AND  MAINTENANCE  OF  COMMUNITY  HOUSING,
 INCLUDING ACCESSORY APARTMENTS FOR RENTAL TO ELIGIBLE INDIVIDUALS EITHER
 BY  THE  CITY OR TOWN OR ITS HOUSING AUTHORITY; OR IN CONJUNCTION WITH A
 PUBLIC/PRIVATE PARTNERSHIP, WHERE THE PRIVATE PARTNER AGREES  TO  COMPLY
 WITH  THE  PROFIT  GUIDELINES  OF  THE NEW YORK STATE AFFORDABLE HOUSING
 CORPORATION AND THE PROVISIONS OF THIS SECTION;
   (E) THE REHABILITATION OF EXISTING BUILDINGS  AND  STRUCTURES  IN  THE
 CITY OR TOWN FOR THE PURPOSE OF CONVERSION TO COMMUNITY HOUSING FOR SALE
 OR RENTAL TO ELIGIBLE INDIVIDUALS;
   (F)  THE ACQUISITION OF INTERESTS IN REAL PROPERTY IN EXISTING HOUSING
 STOCK, WHICH WILL RESULT IN THE PRODUCTION OF COMMUNITY HOUSING FOR SALE
 OR RENTAL TO ELIGIBLE INDIVIDUALS; AND
   (G) THE PROVISION OF HOUSING  COUNSELING  SERVICES  BY  NOT-FOR-PROFIT
 CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
 ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES.
   4. FUND MANAGEMENT. INTEREST ACCRUED BY MONIES DEPOSITED INTO THE FUND
 SHALL  BE  CREDITED TO THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO
 THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT. NOTHING CONTAINED IN  THIS
 SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN WHOLE OR IN PART,
 PURSUANT TO THE LOCAL FINANCE LAW, OF ANY PURPOSE AUTHORIZED PURSUANT TO
 THIS SECTION. MONIES FROM THE FUND MAY BE UTILIZED TO REPAY INDEBTEDNESS
 OR  OBLIGATIONS  INCURRED  PURSUANT  TO THE LOCAL FINANCE LAW CONSISTENT
 WITH EFFECTUATING THE PURPOSES OF THIS SECTION.
   5. ELIGIBLE EXPENSES. FOR  THE  PURPOSES  OF  THIS  SECTION,  ELIGIBLE
 EXPENSES  RELATING  TO THE PRODUCTION OF COMMUNITY HOUSING AND THE REHA-
 BILITATION OF EXISTING BUILDINGS AND STRUCTURES  UNDER  THE  FUND  SHALL
 INCLUDE  BUT  NOT BE LIMITED TO LAND ACQUISITION, PLANNING, ENGINEERING,
 CONSTRUCTION COSTS, AND OTHER HARD AND SOFT COSTS  DIRECTLY  RELATED  TO
 THE CONSTRUCTION, REHABILITATION, PURCHASE OR RENTAL OF HOUSING PURSUANT
 TO THIS SECTION. ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE SALE
 OR  RENTAL  OF  COMMUNITY  HOUSING,  OR  THE REPAYMENT OF LOANS SHALL BE
 DEPOSITED IN THE FUND.
   6. ADVISORY BOARD ESTABLISHED. THE GOVERNING BODY OF ANY CITY OR  TOWN
 WHICH  HAS ESTABLISHED A COMMUNITY HOUSING FUND PURSUANT TO THIS SECTION
 SHALL CREATE AN  ADVISORY  BOARD  TO  REVIEW  AND  MAKE  RECOMMENDATIONS
 REGARDING  THE  TOWN'S  COMMUNITY  HOUSING  PLAN REQUIRED BY SUBDIVISION
 SEVEN OF THIS SECTION. SUCH BOARD SHALL CONSIST OF NOT LESS  THAN  SEVEN
 NOR  MORE  THAN  FIFTEEN  LEGAL  RESIDENTS OF THE MUNICIPALITY WHO SHALL
 SERVE WITHOUT COMPENSATION. NO MEMBER  OF  THE  LOCAL  LEGISLATIVE  BODY
 SHALL  SERVE  ON THE BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE OF:
 (A) THE CONSTRUCTION INDUSTRY; (B) THE REAL  ESTATE  INDUSTRY;  (C)  THE
 BANKING INDUSTRY; AND THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR
 HUMAN SERVICES ORGANIZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED WITH-
 IN  A TOWN, ELECT TO PARTICIPATE IN THE FUND, AS PROVIDED IN SUBDIVISION
 EIGHT OF THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT  OF
 A  PARTICIPATING VILLAGE OR VILLAGES.  WHERE AN INDIAN NATION IS LOCATED
 S. 7589                             4
 
 WITHIN THE BOUNDARIES OF A CITY OR TOWN,  THE  BOARD  SHALL  INCLUDE  AT
 LEAST  ONE  MEMBER  FROM SUCH NATION. THE BOARD SHALL ACT IN AN ADVISORY
 CAPACITY TO THE GOVERNING BODY.
   7.  ADOPTION OF HOUSING PLAN. (A) BEFORE A CITY OR TOWN MAY EXPEND ANY
 FUNDS PURSUANT TO THIS SECTION, THE GOVERNING BODY SHALL FIRST  ADOPT  A
 HOUSING  PLAN WHICH ESTABLISHES AN IMPLEMENTATION PLAN FOR THE PROVISION
 OF COMMUNITY HOUSING OPPORTUNITIES BY THE FUND.    SAID  PLAN  SHALL  BE
 ADOPTED  BY  LOCAL  LAW. SUCH PLAN SHALL ADHERE TO THE FOLLOWING PRINCI-
 PLES:
   (1) PUBLIC INVESTMENT. TO ACCOUNT FOR AND MINIMIZE  SOCIAL,  ECONOMIC,
 AND  ENVIRONMENTAL  COSTS  OF  NEW DEVELOPMENT, INCLUDING INFRASTRUCTURE
 COSTS SUCH AS TRANSPORTATION, SEWERS, AND WASTEWATER  TREATMENT,  WATER,
 SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
   (2)  DEVELOPMENT.  TO ENCOURAGE DEVELOPMENT IN AREAS WHERE TRANSPORTA-
 TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
   (3) CONSERVATION.  TO  PROTECT,  PRESERVE,  AND  ENHANCE  THE  STATE'S
 RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
 WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
 AND ARCHEOLOGICAL SITES;
   (4)  COORDINATION.  TO PROMOTE COORDINATION OF STATE AND LOCAL GOVERN-
 MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
 EFFICIENT, PLANNED AND COST-EFFECTIVE DELIVERY  OF  GOVERNMENT  SERVICES
 BY,  AMONG  OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS AMONG ADJA-
 CENT COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY  OF
 ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
   (5)  COMMUNITY  DESIGN.  TO STRENGTHEN COMMUNITIES THROUGH DEVELOPMENT
 AND REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME  AND
 AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
 BORHOOD  DEVELOPMENT,  PLANNED  UNIT  DEVELOPMENT, OPEN SPACE DISTRICTS,
 DOWNTOWN REVITALIZATION, BROWNFIELD REDEVELOPMENT,  ENHANCED  BEAUTY  IN
 PUBLIC  SPACES,  AND DIVERSE AND COMMUNITY HOUSING IN CLOSE PROXIMITY TO
 PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
   (6)  TRANSPORTATION.  TO  PROVIDE  TRANSPORTATION  CHOICES,  INCLUDING
 INCREASING  PUBLIC  TRANSIT  AND ALTERNATIVE MODES OF TRANSPORTATION, IN
 ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION,  AND  AUTOMO-
 BILE POLLUTION;
   (7)  CONSISTENCY.  TO  ENSURE  PREDICTABILITY IN BUILDING AND LAND USE
 CODES; AND
   (8) COMMUNITY  COLLABORATION.  TO  PROVIDE  FOR  AND  ENCOURAGE  LOCAL
 GOVERNMENTS  TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED EFFORT,
 PLANS THAT INCLUDE LONG TERM LAND  USE  AND  PERMIT  PREDICTABILITY  AND
 COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLEMENTATION.
   (B)  SUCH  PLAN  MAY  INCLUDE  THE ESTABLISHMENT OF A MAP OR MAPS THAT
 DELINEATE THE HOUSING IMPLEMENTATION  RECOMMENDATIONS  PROPOSED  BY  THE
 TOWN.
   (C) SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS.
   (D)  THE  HOUSING PLAN SHALL BE AN ELEMENT OF THE CITY OR TOWN COMPRE-
 HENSIVE PLAN.
   (E) SUCH PLAN SHALL ENSURE THAT ALL COMMUNITY HOUSING, CREATED  PURSU-
 ANT  TO  THIS SECTION, REMAINS AFFORDABLE. SUBSEQUENT PURCHASERS OF SUCH
 COMMUNITY HOUSING, AT THE TIME OF PURCHASE, SHALL BE  ELIGIBLE  INDIVID-
 UALS AS DEFINED HEREIN.
   (F) SUCH PLAN SHALL PROVIDE FOR THE EQUITABLE DISTRIBUTION OF COMMUNI-
 TY HOUSING OPPORTUNITIES AMONG ALL THE COMMUNITIES OF THE TOWN. THE PLAN
 SHALL  ENSURE  THAT NO COMMUNITY HAS AN UNDUE CONCENTRATION OF COMMUNITY
 HOUSING OPPORTUNITIES THAT WOULD SUBSTANTIALLY ALTER  THE  CHARACTER  OF
 S. 7589                             5
 
 THE  COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMUNITY HOUS-
 ING OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN A  COMMU-
 NITY SHALL BE CONSIDERED.
   8.  VILLAGE PARTICIPATION. (A) THE PARTICIPATION OF ANY VILLAGE, WHERE
 THERE IS A TOWN COMMUNITY HOUSING FUND, IN THE PRODUCTION  OF  COMMUNITY
 HOUSING  AUTHORIZED  BY  THIS  SECTION,  SHALL  BE  AT THE OPTION OF THE
 VILLAGE. IN ORDER TO PARTICIPATE, A  VILLAGE  SHALL  PASS  A  RESOLUTION
 OPTING  INTO  THE  PROGRAM  AND SHALL SUBMIT SAID RESOLUTION TO THE TOWN
 BOARD.
   (B) WHERE A VILLAGE OPTS TO PARTICIPATE PURSUANT TO THIS  SUBDIVISION,
 AN  INTERGOVERNMENTAL  AGREEMENT  SHALL  BE EXECUTED PURSUANT TO ARTICLE
 FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER APPLICABLE LEGAL AUTHORITY,
 IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBILITIES OF EACH GOVERNMENT
 REGARDING COMMUNITY HOUSING OPPORTUNITIES.
   (C) REGARDLESS OF  WHETHER  A  VILLAGE  PARTICIPATES  IN  THE  PROGRAM
 AUTHORIZED  BY  THIS SECTION, PROPERTIES IN THE VILLAGE SHALL BE SUBJECT
 TO THE SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY SECTION FOUR-
 TEEN HUNDRED FORTY-NINE-BB OF THE TAX LAW.
   § 2. The tax law is amended by adding a new article 33-C  to  read  as
 follows:
                                ARTICLE 33-C
              TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS
 SECTION 1575. DEFINITIONS.
         1576. IMPOSITION OF TAX.
         1577. PAYMENT OF TAX.
         1578. LIABILITY FOR TAX.
         1579. EXEMPTIONS.
         1580. CREDIT.
         1581. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1582. DESIGNATION OF AGENTS.
         1583. LIABILITY OF RECORDING OFFICER.
         1584. DEPOSIT AND DISPOSITION OF REVENUE.
         1585. JUDICIAL REVIEW.
         1586. APPORTIONMENT.
         1587. MISCELLANEOUS.
         1588. RETURNS TO BE SECRET.
   §  1575.  DEFINITIONS.  WHEN  USED  IN  THIS ARTICLE, UNLESS OTHERWISE
 EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   1. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY, SOCIETY, ASSOCIATION,  JOINT  STOCK  COMPANY,  CORPORATION,  ESTATE,
 RECEIVER,  TRUSTEE,  ASSIGNEE,  REFEREE  OR ANY OTHER PERSON ACTING IN A
 FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
 OTHERWISE,  ANY  COMBINATION OF INDIVIDUALS, AND ANY OTHER FORM OF UNIN-
 CORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS.
   2. "CONTROLLING INTEREST" MEANS (A) IN  THE  CASE  OF  A  CORPORATION,
 EITHER  FIFTY  PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER OF ALL
 CLASSES OF STOCK OF SUCH CORPORATION, OR FIFTY PERCENT OR  MORE  OF  THE
 CAPITAL,  PROFITS  OR  BENEFICIAL  INTEREST IN SUCH VOTING STOCK OF SUCH
 CORPORATION, AND (B) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
 OTHER ENTITY, FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS  OR  BENEFI-
 CIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
   3.  "REAL  PROPERTY"  MEANS EVERY ESTATE OR RIGHT, LEGAL OR EQUITABLE,
 PRESENT OR FUTURE, VESTED OR CONTINGENT, IN LANDS, TENEMENTS OR  HEREDI-
 TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
 S. 7589                             6
 
 WHICH  ARE LOCATED IN WHOLE OR IN PART WITHIN ANY CITY OR TOWN. IT SHALL
 NOT INCLUDE RIGHTS TO SEPULTURE.
   4.  "CONSIDERATION"  MEANS  THE  PRICE ACTUALLY PAID OR REQUIRED TO BE
 PAID FOR THE REAL PROPERTY OR INTEREST THEREIN, INCLUDING PAYMENT FOR AN
 OPTION OR CONTRACT TO PURCHASE REAL PROPERTY, WHETHER OR  NOT  EXPRESSED
 IN  THE DEED AND WHETHER PAID OR REQUIRED TO BE PAID BY MONEY, PROPERTY,
 OR ANY OTHER THING OF  VALUE.  IT  SHALL  INCLUDE  THE  CANCELLATION  OR
 DISCHARGE  OF  AN  INDEBTEDNESS OR OBLIGATION. IT SHALL ALSO INCLUDE THE
 AMOUNT OF ANY MORTGAGE, PURCHASE MONEY MORTGAGE, LIEN  OR  OTHER  ENCUM-
 BRANCE,  WHETHER  OR NOT THE UNDERLYING INDEBTEDNESS IS ASSUMED OR TAKEN
 SUBJECT TO.
   (A) IN THE CASE OF A CREATION OF A LEASEHOLD INTEREST OR THE  GRANTING
 OF  AN  OPTION  WITH  USE  AND OCCUPANCY OF REAL PROPERTY, CONSIDERATION
 SHALL INCLUDE, BUT NOT BE LIMITED TO, THE VALUE OF THE RENTAL AND  OTHER
 PAYMENTS  ATTRIBUTABLE  TO THE USE AND OCCUPANCY OF THE REAL PROPERTY OR
 INTEREST THEREIN, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO PURCHASE
 OR RENEW AND THE VALUE OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE  TO  THE
 EXERCISE OF ANY OPTION TO RENEW.
   (B)  IN  THE  CASE OF A CREATION OF A SUBLEASEHOLD INTEREST, CONSIDER-
 ATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE VALUE  OF  THE  SUBLEASE
 RENTAL  PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL PROP-
 ERTY, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO RENEW AND THE  VALUE
 OF  RENTAL  OR OTHER PAYMENTS ATTRIBUTABLE TO THE EXERCISE OF ANY OPTION
 TO RENEW LESS THE VALUE OF THE REMAINING  PRIME  LEASE  RENTAL  PAYMENTS
 REQUIRED TO BE MADE.
   (C) IN THE CASE OF A CONTROLLING INTEREST IN ANY ENTITY THAT OWNS REAL
 PROPERTY,  CONSIDERATION  SHALL  MEAN  THE FAIR MARKET VALUE OF THE REAL
 PROPERTY OR INTEREST THEREIN, APPORTIONED BASED ON THE PERCENTAGE OF THE
 OWNERSHIP INTEREST TRANSFERRED OR ACQUIRED IN THE ENTITY.
   (D) IN THE CASE OF AN ASSIGNMENT OR SURRENDER OF A LEASEHOLD  INTEREST
 OR THE ASSIGNMENT OR SURRENDER OF AN OPTION OR CONTRACT TO PURCHASE REAL
 PROPERTY,  CONSIDERATION  SHALL  NOT  INCLUDE THE VALUE OF THE REMAINING
 RENTAL PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS OF SUCH  LEASE
 OR  THE AMOUNT TO BE PAID FOR THE REAL PROPERTY PURSUANT TO THE TERMS OF
 THE OPTION OR CONTRACT BEING ASSIGNED OR SURRENDERED.
   (E) IN THE CASE OF (1) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A
 COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER
 OF A PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE
 PLAN SPONSOR, AND (2) THE SUBSEQUENT CONVEYANCE BY THE OWNER THEREOF  OF
 SUCH  STOCK  IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE
 GRANT OR TRANSFER OF A PROPRIETARY  LEASEHOLD  FOR  A  COOPERATIVE  UNIT
 OTHER THAN AN INDIVIDUAL RESIDENTIAL UNIT, CONSIDERATION SHALL INCLUDE A
 PROPORTIONATE  SHARE OF THE UNPAID PRINCIPAL OF ANY MORTGAGE ON THE REAL
 PROPERTY OF THE COOPERATIVE HOUSING CORPORATION COMPRISING  THE  COOPER-
 ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
 ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
 ATOR  OF  WHICH SHALL BE THE NUMBER OF SHARES OF STOCK BEING CONVEYED IN
 THE COOPERATIVE HOUSING CORPORATION IN  CONNECTION  WITH  THE  GRANT  OR
 TRANSFER  OF  A PROPRIETARY LEASEHOLD AND THE DENOMINATOR OF WHICH SHALL
 BE THE TOTAL NUMBER OF SHARES OF STOCK IN THE COOPERATIVE HOUSING CORPO-
 RATION.
   5. "CONVEYANCE" MEANS THE TRANSFER OR TRANSFERS  OF  ANY  INTEREST  IN
 REAL  PROPERTY  BY  ANY  METHOD,  INCLUDING  BUT  NOT  LIMITED TO, SALE,
 EXCHANGE, ASSIGNMENT, SURRENDER, MORTGAGE FORECLOSURE, TRANSFER IN  LIEU
 OF  FORECLOSURE,  OPTION,  TRUST  INDENTURE,  TAKING  BY EMINENT DOMAIN,
 CONVEYANCE UPON LIQUIDATION OR BY A RECEIVER, OR TRANSFER OR ACQUISITION
 S. 7589                             7
 
 OF A CONTROLLING INTEREST IN ANY ENTITY WITH AN INTEREST IN REAL PROPER-
 TY.  TRANSFER OF AN INTEREST IN REAL PROPERTY SHALL INCLUDE THE CREATION
 OF A LEASEHOLD OR SUBLEASE ONLY WHERE (A) THE SUM OF  THE  TERM  OF  THE
 LEASE  OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE YEARS,
 (B) SUBSTANTIAL CAPITAL IMPROVEMENTS ARE OR MAY BE MADE BY  OR  FOR  THE
 BENEFIT OF THE LESSEE OR SUBLESSEE, AND (C) THE LEASE OR SUBLEASE IS FOR
 SUBSTANTIALLY  ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL PROPERTY.
 NOTWITHSTANDING THE FOREGOING, CONVEYANCE OF  REAL  PROPERTY  SHALL  NOT
 INCLUDE  A  CONVEYANCE  MADE PURSUANT TO DEVISE, BEQUEST OR INHERITANCE;
 THE CREATION, MODIFICATION,  EXTENSION,  SPREADING,  SEVERANCE,  CONSOL-
 IDATION,  ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION OF A MORTGAGE; A
 MORTGAGE SUBORDINATION AGREEMENT, A  MORTGAGE  SEVERANCE  AGREEMENT,  AN
 INSTRUMENT GIVEN TO PERFECT OR CORRECT A RECORDED MORTGAGE; OR A RELEASE
 OF LIEN OF TAX PURSUANT TO THIS CHAPTER OR THE INTERNAL REVENUE CODE.
   6.  "INTEREST IN THE REAL PROPERTY" INCLUDES TITLE IN FEE, A LEASEHOLD
 INTEREST, A BENEFICIAL INTEREST, AN ENCUMBRANCE, DEVELOPMENT RIGHTS, AIR
 SPACE AND AIR RIGHTS, OR ANY OTHER INTEREST WITH THE  RIGHT  TO  USE  OR
 OCCUPANCY  OF  REAL  PROPERTY  OR THE RIGHT TO RECEIVE RENTS, PROFITS OR
 OTHER INCOME DERIVED FROM REAL PROPERTY. IT SHALL ALSO INCLUDE AN OPTION
 OR CONTRACT TO PURCHASE REAL PROPERTY. IT SHALL NOT INCLUDE A  RIGHT  OF
 FIRST REFUSAL TO PURCHASE REAL PROPERTY.
   7.  "GRANTOR"  MEANS THE PERSON MAKING THE CONVEYANCE OF REAL PROPERTY
 OR INTEREST THEREIN. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER  OR  AN
 ACQUISITION  OF  A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN
 REAL PROPERTY, "GRANTOR" MEANS THE ENTITY WITH AN INTEREST IN REAL PROP-
 ERTY OR A SHAREHOLDER  OR  PARTNER  TRANSFERRING  STOCK  OR  PARTNERSHIP
 INTEREST, RESPECTIVELY.
   8.  "GRANTEE"  MEANS  THE PERSON WHO OBTAINS REAL PROPERTY OR INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9. "COMMUNITY HOUSING FUND" MEANS A COMMUNITY FUND CREATED PURSUANT TO
 SECTION SIX-W OF THE GENERAL MUNICIPAL LAW.
   10. "RECORDING OFFICER" MEANS THE COUNTY CLERK.
   11. "CITY OR TOWN" MEANS A CITY OR TOWN, EXCEPT A CITY OF ONE  MILLION
 OR MORE.
   12. "TREASURER" MEANS THE COUNTY TREASURER.
   §  1576. IMPOSITION OF TAX. 1. NOTWITHSTANDING ANY OTHER PROVISIONS OF
 LAW TO THE CONTRARY, ANY CITY OR TOWN, ACTING THROUGH ITS LOCAL  GOVERN-
 ING BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOS-
 ING  IN  SUCH  CITY OR TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR
 INTEREST THEREIN WHERE THE CONSIDERATION EXCEEDS FIVE  HUNDRED  DOLLARS,
 AT A RATE OF UP TO TWO PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCE.
 PROVIDED,  HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR REIMPOSING
 SUCH TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT TO  SECTION
 TWENTY-THREE  OF  THE MUNICIPAL HOME RULE LAW. SUCH LOCAL LAW SHALL ONLY
 BE SUBMITTED FOR THE APPROVAL OF THE ELECTORS  AT  A  GENERAL  ELECTION.
 NOTWITHSTANDING  THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE
 CITY OR TOWN MUST ESTABLISH A COMMUNITY  PRESERVATION  FUND.    REVENUES
 FROM SUCH TAX SHALL BE DEPOSITED IN SUCH FUND AND MAY BE USED SOLELY FOR
 THE  PURPOSES OF SUCH FUND. SUCH LOCAL LAW SHALL APPLY TO ANY CONVEYANCE
 OCCURRING ON OR AFTER THE FIRST DAY OF A MONTH TO BE DESIGNATED BY  SUCH
 LOCAL GOVERNING BODY, WHICH IS NOT LESS THAN SIXTY DAYS AFTER THE ENACT-
 MENT  OF  SUCH  LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANCES MADE ON OR
 AFTER SUCH DATE PURSUANT TO BINDING WRITTEN CONTRACTS ENTERED INTO PRIOR
 TO SUCH DATE, PROVIDED THAT THE DATE OF EXECUTION OF  SUCH  CONTRACT  IS
 CONFIRMED BY INDEPENDENT EVIDENCE SUCH AS THE RECORDING OF THE CONTRACT,
 S. 7589                             8
 
 PAYMENT  OF  A DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES AS DETERMINED BY
 THE TREASURER.
   2.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, IN
 ADDITION TO THE TAX AUTHORIZED BY SUBDIVISION ONE OF THIS  SECTION,  ANY
 CITY  OR  TOWN,  ACTING THROUGH ITS GOVERNING BODY, IS HEREBY AUTHORIZED
 AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING  IN  SUCH  CITY  OR  TOWN  A
 SUPPLEMENTAL TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN
 WHERE  THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT THE RATE OF UP
 TO ONE HALF OF ONE PERCENT OF THE  CONSIDERATION  FOR  SUCH  CONVEYANCE.
 PROVIDED, HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR RE-IMPOSING
 SUCH  SUPPLEMENTAL TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSU-
 ANT TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME RULE  LAW.    NOTWITH-
 STANDING  THE  FOREGOING,  PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE TOWN
 MUST ESTABLISH A COMMUNITY HOUSING FUND PURSUANT TO SECTION SIX-W OF THE
 GENERAL MUNICIPAL LAW.   REVENUES FROM SUCH SUPPLEMENTAL  TAX  SHALL  BE
 DEPOSITED  IN SUCH COMMUNITY HOUSING FUND AND MAY BE USED SOLELY FOR THE
 PURPOSES OF SUCH COMMUNITY HOUSING FUND. SUCH LOCAL LAW SHALL  APPLY  TO
 ANY  CONVEYANCE  OCCURRING  ON  OR  AFTER THE FIRST DAY OF A MONTH TO BE
 DESIGNATED BY THE GOVERNING BOARD, WHICH IS NOT  LESS  THAN  SIXTY  DAYS
 AFTER THE ENACTMENT OF SUCH LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANC-
 ES  MADE  ON  OR  AFTER  SUCH DATE PURSUANT TO BINDING WRITTEN CONTRACTS
 ENTERED INTO PRIOR TO SUCH DATE, PROVIDED THAT THE DATE OF EXECUTION  OF
 SUCH CONTRACT IS CONFIRMED BY INDEPENDENT EVIDENCE SUCH AS THE RECORDING
 OF  THE  CONTRACT, PAYMENT OF A DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES
 AS DETERMINED BY THE TREASURER. ANY TAX IMPOSED PURSUANT TO THIS  SUBDI-
 VISION  SHALL  BE ADMINISTERED AND COLLECTED IN A LIKE MANNER AS THE TAX
 IMPOSED BY SUBDIVISION ONE OF THIS SECTION.
   § 1577. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED PURSU-
 ANT TO THIS ARTICLE SHALL BE PAID TO  THE  TREASURER  OR  THE  RECORDING
 OFFICER  ACTING  AS  THE AGENT OF THE TREASURER UPON DESIGNATION AS SUCH
 AGENT BY THE TREASURER. SUCH TAX SHALL BE PAID AT THE SAME TIME  AS  THE
 REAL  ESTATE  TRANSFER TAX IMPOSED BY ARTICLE THIRTY-ONE OF THIS CHAPTER
 IS REQUIRED TO BE PAID.   SUCH  TREASURER  OR  RECORDING  OFFICER  SHALL
 ENDORSE  UPON  EACH  DEED OR INSTRUMENT EFFECTING A CONVEYANCE A RECEIPT
 FOR THE AMOUNT OF THE TAX SO PAID.
   2. A RETURN SHALL BE REQUIRED TO  BE  FILED  WITH  SUCH  TREASURER  OR
 RECORDING  OFFICER  FOR PURPOSES OF THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT TO THIS ARTICLE AT THE SAME TIME AS A RETURN IS REQUIRED TO  BE
 FILED  FOR  PURPOSES  OF THE REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE
 THIRTY-ONE OF THIS CHAPTER. THE TREASURER SHALL PRESCRIBE  THE  FORM  OF
 RETURN,  THE  INFORMATION  WHICH IT SHALL CONTAIN, AND THE DOCUMENTATION
 THAT SHALL ACCOMPANY THE RETURN.  SAID FORM SHALL BE  IDENTICAL  TO  THE
 REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION
 FOURTEEN  HUNDRED  NINE OF THIS CHAPTER, EXCEPT THAT THE TREASURER SHALL
 ADAPT SAID FORM TO REFLECT THE  PROVISIONS  IN  THIS  CHAPTER  THAT  ARE
 INCONSISTENT,  DIFFERENT,  OR  IN  ADDITION TO THE PROVISIONS OF ARTICLE
 THIRTY-ONE OF THIS CHAPTER.    THE  REAL  ESTATE  TRANSFER  TAX  RETURNS
 REQUIRED  TO  BE  FILED  PURSUANT TO THIS SECTION SHALL BE PRESERVED FOR
 THREE YEARS AND THEREAFTER UNTIL SUCH  TREASURER  OR  RECORDING  OFFICER
 ORDERS THEM TO BE DESTROYED.
   3.  THE  RECORDING  OFFICER SHALL NOT RECORD AN INSTRUMENT EFFECTING A
 CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
 THE TAX IMPOSED PURSUANT  TO  THIS  ARTICLE  SHALL  HAVE  BEEN  PAID  AS
 REQUIRED IN THIS SECTION.
   §  1578.  LIABILITY  FOR TAX. 1. THE REAL ESTATE TRANSFER TAX SHALL BE
 PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED TO PAY  THE  TAX  IMPOSED
 S. 7589                             9
 
 PURSUANT  TO THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE
 GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE  GRANTOR  HAS  THE
 DUTY  TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY THE TAX, SUCH
 TAX  SHALL  BE  THE  JOINT  AND SEVERAL LIABILITY OF THE GRANTEE AND THE
 GRANTOR.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ALL
 CONVEYANCES ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY OTHER
 THAN MONEY, IT SHALL BE PRESUMED THAT  THE  CONSIDERATION  IS  THE  FAIR
 MARKET  VALUE  OF  THE REAL PROPERTY OR INTEREST THEREIN. THESE PRESUMP-
 TIONS SHALL PREVAIL UNTIL THE CONTRARY IS  PROVEN,  AND  THE  BURDEN  OF
 PROVING  THE  CONTRARY  SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE
 TAX.
   § 1579. EXEMPTIONS. 1. THE FOLLOWING SHALL BE EXEMPT FROM THE  PAYMENT
 OF  THE  REAL  ESTATE TRANSFER TAX: (A) THE STATE OF NEW YORK, OR ANY OF
 ITS  AGENCIES,  INSTRUMENTALITIES,  POLITICAL  SUBDIVISIONS,  OR  PUBLIC
 CORPORATIONS  (INCLUDING  A  PUBLIC  CORPORATION  CREATED PURSUANT TO AN
 AGREEMENT OR COMPACT WITH ANOTHER STATE OR DOMINION OF CANADA); AND
   (B) THE UNITED NATIONS, THE UNITED STATES OF AMERICA  OR  ANY  OF  ITS
 AGENCIES OR INSTRUMENTALITIES.
   2.  THE  TAX SHALL NOT APPLY TO ANY OF THE FOLLOWING CONVEYANCES:  (A)
 CONVEYANCES TO THE UNITED NATIONS, THE UNITED  STATES  OF  AMERICA,  THE
 STATE  OF NEW YORK, OR ANY OF THEIR INSTRUMENTALITIES, AGENCIES OR POLI-
 TICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPO-
 RATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH  ANOTHER  STATE  OR
 THE  DOMINION  OF  CANADA);  (B)  CONVEYANCES  WHICH ARE OR WERE USED TO
 SECURE A DEBT OR OTHER OBLIGATION; (C) CONVEYANCES WHICH, WITHOUT  ADDI-
 TIONAL  CONSIDERATION,  CONFIRM,  CORRECT,  MODIFY  OR SUPPLEMENT A DEED
 PREVIOUSLY RECORDED; (D) CONVEYANCES OF REAL PROPERTY WITHOUT  CONSIDER-
 ATION  AND  OTHERWISE  THAN  IN  CONNECTION WITH A SALE, INCLUDING DEEDS
 CONVEYING REALTY AS BONA FIDE GIFTS; (E) CONVEYANCES GIVEN IN CONNECTION
 WITH A TAX SALE; (F) CONVEYANCES TO EFFECTUATE A MERE CHANGE OF IDENTITY
 OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFI-
 CIAL OWNERSHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE  HOUSING  CORPO-
 RATION  OF  THE  REAL  PROPERTY  COMPRISING  THE COOPERATIVE DWELLING OR
 DWELLINGS; (G) CONVEYANCES WHICH CONSIST OF A  DEED  OF  PARTITION;  (H)
 CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT; (I) CONVEYANC-
 ES OF REAL PROPERTY WHICH CONSIST OF THE EXECUTION OF A CONTRACT TO SELL
 REAL  PROPERTY  WITHOUT  THE  USE  OR  OCCUPANCY OF SUCH PROPERTY OR THE
 GRANTING OF AN OPTION TO PURCHASE REAL PROPERTY WITHOUT THE USE OR OCCU-
 PANCY OF SUCH PROPERTY; (J) CONVEYANCES  OF  REAL  PROPERTY,  WHERE  THE
 ENTIRE  PARCEL  OF REAL PROPERTY TO BE CONVEYED IS THE SUBJECT OF ONE OR
 MORE  OF  THE  FOLLOWING  DEVELOPMENT  RESTRICTIONS:  (1)  AGRICULTURAL,
 CONSERVATION,  SCENIC,  OR  AN  OPEN  SPACE  EASEMENT,  (2) COVENANTS OR
 RESTRICTIONS PROHIBITING DEVELOPMENT,  (3)  A  PURCHASE  OF  DEVELOPMENT
 RIGHTS  AGREEMENT, (4) A TRANSFER OF DEVELOPMENT RIGHTS AGREEMENT, WHERE
 THE PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED,  (5)
 SAID REAL PROPERTY IS SUBJECT TO THE DEVELOPMENT RESTRICTION OF AN AGRI-
 CULTURAL  DISTRICT OR INDIVIDUAL COMMITMENT, PURSUANT TO ARTICLE TWENTY-
 FIVE-AA OF THE AGRICULTURE AND MARKETS LAW, (6) REAL PROPERTY SUBJECT TO
 ANY LOCALLY ADOPTED LAND PRESERVATION AGREEMENT, PROVIDED SAID EXEMPTION
 IS INCLUDED IN THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY  THIS  ARTI-
 CLE;  (K)  CONVEYANCES  OF  REAL  PROPERTY, WHERE THE PROPERTY IS VIABLE
 AGRICULTURAL LAND AS DEFINED  IN  SUBDIVISION  SEVEN  OF  SECTION  THREE
 HUNDRED  ONE  OF THE AGRICULTURE AND MARKETS LAW AND THE ENTIRE PROPERTY
 TO BE CONVEYED  IS  TO  BE  MADE  SUBJECT  TO  ONE  OF  THE  DEVELOPMENT
 S. 7589                            10

 RESTRICTIONS  PROVIDED  FOR IN SUBPARAGRAPH TWO OF PARAGRAPH (J) OF THIS
 SUBDIVISION PROVIDED THAT SAID  DEVELOPMENT  RESTRICTION  PRECLUDES  THE
 CONVERSION  OF THE PROPERTY TO A NON-AGRICULTURAL USE FOR AT LEAST THREE
 YEARS  FROM  THE  DATE  OF TRANSFER, AND SAID DEVELOPMENT RESTRICTION IS
 EVIDENCED BY AN EASEMENT, AGREEMENT, OR OTHER SUITABLE INSTRUMENT  WHICH
 IS TO BE CONVEYED TO THE CITY OR TOWN SIMULTANEOUSLY WITH THE CONVEYANCE
 OF  THE  REAL  PROPERTY;  OR  (L)  CONVEYANCES OF REAL PROPERTY FOR OPEN
 SPACE, PARKS, COMMUNITY HOUSING, OR HISTORIC  PRESERVATION  PURPOSES  TO
 ANY  NOT-FOR-PROFIT  TAX  EXEMPT  CORPORATION OPERATED FOR CONSERVATION,
 ENVIRONMENTAL, COMMUNITY HOUSING OR HISTORIC PRESERVATION PURPOSES.
   3. THE GOVERNING BODY OF A CITY OR TOWN, BY LOCAL LAW MAY ESTABLISH  A
 COMMUNITY  HOUSING  EXEMPTION.  SUCH  EXEMPTION MAY NOT EXCEED AN AMOUNT
 EQUAL TO THE RESIDENTIAL MEDIAN SALE PRICE OF THE COUNTY  IN  WHICH  THE
 CITY  OR  TOWN  IS LOCATED, AS DETERMINED BY THE OFFICE OF REAL PROPERTY
 SERVICES WITHIN THE DEPARTMENT OF TAXATION AND FINANCE.  SUCH  EXEMPTION
 SHALL BE ALLOWED ON THE CONSIDERATION OF THE CONVEYANCE OF IMPROVED REAL
 PROPERTY  OR  AN INTEREST THEREIN. THE EXEMPTION GRANTED PURSUANT TO THE
 PROVISIONS OF THIS SUBDIVISION SHALL ONLY APPLY TO CONVEYANCES FOR RESI-
 DENTIAL PROPERTY WHERE THE CONSIDERATION IS TWO MILLION DOLLARS OR LESS.
   § 1580. CREDIT. A GRANTEE SHALL BE ALLOWED A CREDIT  AGAINST  THE  TAX
 DUE  ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS PAID BY SUCH
 GRANTEE ON A PRIOR CREATION OF A LEASEHOLD OF ALL OR A  PORTION  OF  THE
 SAME  REAL  PROPERTY  OR  ON  THE  GRANTING  OF AN OPTION OR CONTRACT TO
 PURCHASE ALL OR A PORTION OF THE SAME REAL  PROPERTY  BY  SUCH  GRANTEE.
 SUCH  CREDIT  SHALL  BE  COMPUTED  BY  MULTIPLYING  THE  TAX PAID ON THE
 CREATION OF THE LEASEHOLD OR ON THE GRANTING OF THE OPTION  OR  CONTRACT
 BY  A FRACTION, THE NUMERATOR OF WHICH IS THE VALUE OF THE CONSIDERATION
 USED TO COMPUTE SUCH TAX PAID WHICH IS NOT YET DUE TO  SUCH  GRANTOR  ON
 THE  DATE  OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR WILL NOT
 BE ENTITLED TO RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR OF WHICH IS
 THE TOTAL VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
   § 1581. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1.  NOTWITHSTANDING
 THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION TWO OF
 SECTION  FIFTEEN HUNDRED SEVENTY-FIVE OF THIS ARTICLE OR ANYTHING TO THE
 CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED SEVEN-
 TY-FIVE OF THIS ARTICLE, THE TAX IMPOSED PURSUANT TO THIS ARTICLE  SHALL
 APPLY TO (A) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A COOPERATIVE
 HOUSING  CORPORATION  IN  CONNECTION  WITH  THE  GRANT  OR TRANSFER OF A
 PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE PLAN
 SPONSOR, AND (B) THE SUBSEQUENT CONVEYANCE OF SUCH STOCK  IN  A  COOPER-
 ATIVE  HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER OF A
 PROPRIETARY LEASEHOLD BY THE OWNER THEREOF. WITH  RESPECT  TO  ANY  SUCH
 SUBSEQUENT  CONVEYANCE  WHERE  THE PROPERTY IS AN INDIVIDUAL RESIDENTIAL
 UNIT, THE CONSIDERATION FOR THE  INTEREST  CONVEYED  SHALL  EXCLUDE  THE
 VALUE  OF  ANY  LIENS  ON CERTIFICATES OF STOCK OR OTHER EVIDENCES OF AN
 OWNERSHIP INTEREST IN AND A PROPRIETARY  LEASE  FROM  A  CORPORATION  OR
 PARTNERSHIP  FORMED FOR THE PURPOSE OF COOPERATIVE OWNERSHIP OF RESIDEN-
 TIAL INTEREST IN REAL ESTATE REMAINING THEREON AT THE  TIME  OF  CONVEY-
 ANCE.  IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED IN PARAGRAPH (A)
 OF THIS SUBDIVISION, A CREDIT SHALL BE ALLOWED FOR A PROPORTIONATE  PART
 OF  THE  AMOUNT  OF  ANY TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE
 HOUSING CORPORATION OF THE  REAL  PROPERTY  COMPRISING  THE  COOPERATIVE
 DWELLING  OR  DWELLINGS TO THE EXTENT THAT SUCH CONVEYANCE EFFECTUATED A
 MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF SUCH PROPERTY AND NOT  A
 CHANGE  IN  THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY. THE AMOUNT OF THE
 CREDIT SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF  TAX  PAID  UPON
 S. 7589                            11
 
 THE  CONVEYANCE  TO  THE COOPERATIVE HOUSING CORPORATION BY A PERCENTAGE
 REPRESENTING THE EXTENT TO WHICH  SUCH  CONVEYANCE  EFFECTUATED  A  MERE
 CHANGE  OF IDENTITY OR FORM OF OWNERSHIP AND NOT A CHANGE IN THE BENEFI-
 CIAL  OWNERSHIP  OF  SUCH  PROPERTY,  AND THEN MULTIPLYING THE RESULTING
 PRODUCT BY A FRACTION, THE NUMERATOR OF WHICH SHALL  BE  THE  NUMBER  OF
 SHARES  OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN PARAGRAPH (A) OF
 THIS SUBDIVISION, AND THE DENOMINATOR OF WHICH SHALL BE THE TOTAL NUMBER
 OF SHARES OF STOCK OF THE COOPERATIVE HOUSING CORPORATION (INCLUDING ANY
 STOCK HELD BY THE CORPORATION). IN NO EVENT, HOWEVER, SHALL SUCH  CREDIT
 REDUCE  THE  TAX,  ON  A  CONVEYANCE  DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION, BELOW ZERO, NOR SHALL ANY SUCH CREDIT BE ALLOWED FOR A  TAX
 PAID  MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE ON WHICH OCCURS THE
 FIRST IN A SERIES OF CONVEYANCES OF SHARES OF STOCK IN  AN  OFFERING  OF
 COOPERATIVE  HOUSING  CORPORATION  SHARES  DESCRIBED IN PARAGRAPH (A) OF
 THIS SUBDIVISION.
   2. EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE  AN
 INFORMATION  RETURN  WITH  THE  TREASURER BY JULY FIFTEENTH OF EACH YEAR
 COVERING THE PRECEDING PERIOD OF JANUARY FIRST  THROUGH  JUNE  THIRTIETH
 AND  BY  JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING PERIOD OF
 JULY FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN  SUCH
 INFORMATION  REGARDING  THE CONVEYANCE OF SHARES OF STOCK IN THE COOPER-
 ATIVE HOUSING CORPORATION AS THE TREASURER MAY DEEM  NECESSARY,  INCLUD-
 ING,  BUT  NOT LIMITED TO, THE NAMES, ADDRESSES AND EMPLOYEE IDENTIFICA-
 TION NUMBERS OR SOCIAL SECURITY NUMBERS OF THE GRANTOR AND THE  GRANTEE,
 THE  NUMBER  OF  SHARES  CONVEYED,  THE  DATE  OF THE CONVEYANCE AND THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   § 1582. DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED  TO  DESIG-
 NATE  THE  RECORDING  OFFICER TO ACT AS HIS OR HER AGENT FOR PURPOSES OF
 COLLECTING THE TAX AUTHORIZED  BY  THIS  ARTICLE.  THE  TREASURER  SHALL
 PROVIDE  FOR THE MANNER IN WHICH SUCH PERSON MAY BE DESIGNATED AS HIS OR
 HER AGENT SUBJECT TO SUCH TERMS AND CONDITIONS AS  THE  TREASURER  SHALL
 PRESCRIBE.  THE  REAL ESTATE TRANSFER TAX SHALL BE PAID TO SUCH AGENT AS
 PROVIDED IN SECTION FIFTEEN HUNDRED SEVENTY-SEVEN OF THIS ARTICLE.
   § 1583. LIABILITY OF RECORDING OFFICER. A RECORDING OFFICER SHALL  NOT
 BE  LIABLE  FOR  ANY INACCURACY IN THE AMOUNT OF TAX IMPOSED PURSUANT TO
 THIS ARTICLE THAT HE OR SHE SHALL COLLECT SO LONG AS  HE  OR  SHE  SHALL
 COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE VALUE
 OF  THE  INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM OR HER BY
 THE PERSON PAYING THE TAX.
   § 1584. DEPOSIT AND DISPOSITION OF REVENUE. 1.  ALL  TAXES,  PENALTIES
 AND  INTEREST IMPOSED BY THE CITY OR TOWN UNDER THE AUTHORITY OF SECTION
 FIFTEEN HUNDRED SEVENTY-SIX OF THIS ARTICLE, WHICH ARE COLLECTED BY  THE
 TREASURER  OR  HIS  OR  HER AGENTS, SHALL BE DEPOSITED IN TRUST FUNDS AS
 PROVIDED BY THIS SECTION FOR THE CITY OR TOWN AND SHALL BE KEPT IN TRUST
 AND SEPARATE AND APART FROM ALL OTHER MONIES IN POSSESSION OF THE TREAS-
 URER. THE TREASURER OR HIS OR HER  AGENTS  SHALL  PROVIDE  FOR  SEPARATE
 TRUST  FUNDS  FOR COMMUNITY PRESERVATION AND COMMUNITY HOUSING REVENUES.
 MONEYS IN SUCH FUND  SHALL  BE  DEPOSITED  AND  SECURED  IN  THE  MANNER
 PROVIDED  BY  SECTION TEN OF THE GENERAL MUNICIPAL LAW. PENDING EXPENDI-
 TURE FROM SUCH FUND, MONEYS  THEREIN  MAY  BE  INVESTED  IN  THE  MANNER
 PROVIDED  IN  SECTION  ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST
 EARNED OR CAPITAL GAIN REALIZED ON THE MONEYS SO DEPOSITED  OR  INVESTED
 SHALL ACCRUE TO AND BECOME PART OF SUCH FUND.
   2.  THE  TREASURER SHALL RETAIN SUCH AMOUNT AS HE OR SHE MAY DETERMINE
 TO BE NECESSARY FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE  CITY
 OR  TOWN,  UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED SEVENTY-SIX OF
 S. 7589                            12
 
 THIS ARTICLE, OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS  OF  SUCH
 TAXES TO THOSE TAXPAYERS ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS
 OF THIS ARTICLE.
   3. THE TREASURER, AFTER RESERVING SUCH REFUNDS, SHALL ON OR BEFORE THE
 TWELFTH DAY OF EACH MONTH PAY TO THE CITY COMPTROLLER OR THE TOWN SUPER-
 VISOR  THE  TAXES,  PENALTIES AND INTEREST IMPOSED BY THE TOWN UNDER THE
 AUTHORITY OF  SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX  OF  THIS  ARTICLE,
 COLLECTED  BY  THE  TREASURER,  PURSUANT TO THIS ARTICLE DURING THE NEXT
 PRECEDING CALENDAR MONTH. THE AMOUNT SO PAYABLE SHALL  BE  CERTIFIED  TO
 THE  CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASURER, WHO SHALL
 NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH  CERTIFICATION.  PROVIDED,
 HOWEVER,  ANY SUCH CERTIFICATION MAY BE BASED ON SUCH INFORMATION AS MAY
 BE AVAILABLE TO THE TREASURER AT THE TIME  SUCH  CERTIFICATION  MUST  BE
 MADE  UNDER  THIS  SECTION. WHERE THE AMOUNT SO PAID OVER TO THE CITY OR
 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT DUE TO THE
 CITY OR TOWN, THE AMOUNT OF THE OVERPAYMENT  OR  UNDERPAYMENT  SHALL  BE
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASUR-
 ER,  WHO  SHALL  NOT  BE  HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIF-
 ICATION. THE AMOUNT OF THE  OVERPAYMENT  OR  UNDERPAYMENT  SHALL  BE  SO
 CERTIFIED  TO  THE CITY COMPTROLLER OR THE TOWN SUPERVISOR AS SOON AFTER
 THE DISCOVERY OF THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY  POSSIBLE
 AND  SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY THE TREASURER TO SUCH CITY
 OR TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAY-
 MENT FROM OR BY ADDING THE AMOUNT  OF  ANY  SUCH  UNDERPAYMENT  TO  SUCH
 NUMBER  OF  SUBSEQUENT  PAYMENTS  AND DISTRIBUTIONS AS THE TREASURER AND
 CITY COMPTROLLER OR TOWN SUPERVISOR SHALL CONSIDER REASONABLE IN VIEW OF
 THE OVERPAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.
   4. ALL MONIES RECEIVED FROM THE TREASURER SHALL BE  DEPOSITED  IN  THE
 APPROPRIATE  FUND  OF THE CITY OR TOWN, PURSUANT TO SECTION SIX-W OF THE
 GENERAL MUNICIPAL LAW.
   § 1585. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE  AMOUNT  OF
 ANY  TAX  PAYABLE  UNDER  SECTION  FIFTEEN HUNDRED SEVENTY-EIGHT OF THIS
 ARTICLE SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY
 OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING  UNDER  ARTICLE  SEVENTY-
 EIGHT  OF  THE  CIVIL  PRACTICE LAW AND RULES IF APPLICATION THEREFOR IS
 MADE TO THE SUPREME COURT WITHIN FOUR MONTHS AFTER  THE  GIVING  OF  THE
 NOTICE  OF  SUCH  FINAL  DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH
 PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW  AND
 RULES SHALL NOT BE INSTITUTED UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO
 BE REVIEWED, WITH SUCH INTEREST AND PENALTIES THEREON AS MAY BE PROVIDED
 FOR  BY  LOCAL LAW SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDER-
 TAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO  TRANSACT  BUSINESS  IN
 THIS  STATE  AND APPROVED BY THE STATE SUPERINTENDENT OF INSURANCE AS TO
 SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE  SUPREME
 COURT  SHALL  APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED
 OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
 MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT THE OPTION OF
 THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT TO COVER THE
 TAXES, INTEREST AND PENALTIES STATED IN  SUCH  DETERMINATION,  PLUS  THE
 COSTS  AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE
 PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED  TO  PAY
 SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLI-
 CATION.
   2.  WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE-
 GALLY OR UNCONSTITUTIONALLY ASSESSED OR COLLECTED  AND  APPLICATION  FOR
 THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
 S. 7589                            13
 
 OFFICERS,  AND  SUCH OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION
 DENYING SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE  REVIEWABLE
 BY  A  PROCEEDING  UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
 AND  RULES;  PROVIDED,  HOWEVER,  THAT (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) AN
 UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
 AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
 APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
 CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
 ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
   § 1586. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT TO THIS ARTICLE, SHALL PROVIDE FOR A  METHOD  OF  APPORTIONMENT  FOR
 DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR INTEREST
 THEREIN IS SITUATED WITHIN AND WITHOUT THE CITY OR TOWN.
   § 1587. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT  TO  THIS  ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE CITY OR
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED
 PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE DETERMI-
 NATION OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAYMENTS AND  OVERPAY-
 MENTS  AND  THE  IMPOSITION OF CIVIL PENALTIES. SUCH PROVISIONS SHALL BE
 IDENTICAL TO THE CORRESPONDING PROVISIONS OF THE  REAL  ESTATE  TRANSFER
 TAX  IMPOSED  BY  ARTICLE  THIRTY-ONE  OF  THIS  CHAPTER, SO FAR AS SUCH
 PROVISIONS CAN BE MADE APPLICABLE TO THE TAX IMPOSED  PURSUANT  TO  THIS
 ARTICLE.
   §  1588.  RETURNS  TO  BE  SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR
 THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE COUNTY,  CITY  OR  TOWN,
 INCLUDING  ANY  PERSON  ENGAGED  OR  RETAINED ON AN INDEPENDENT CONTRACT
 BASIS, TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE PARTICULARS SET  FORTH
 OR  DISCLOSED  IN ANY RETURN REQUIRED UNDER A LOCAL LAW ENACTED PURSUANT
 TO THIS ARTICLE.  PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION  SHALL
 PROHIBIT  THE  RECORDING OFFICER FROM MAKING A NOTATION ON AN INSTRUMENT
 AFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX  PAID.  NO  RECORDED
 INSTRUMENT  AFFECTING  A  CONVEYANCE  SHALL  BE  CONSIDERED A RETURN FOR
 PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY,  CITY,  OR  TOWN  IN  ANY  ACTION  OR  PROCEEDING  INVOLVING THE
 COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
 CLE TO WHICH SUCH COUNTY, CITY, OR TOWN IS A PARTY, OR A CLAIMANT, OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS  OF
 A  LOCAL  LAW ENACTED PURSUANT TO THIS ARTICLE WHEN THE RETURNS OR FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY
 OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND  MAY  ADMIT
 IN  EVIDENCE,  SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY
 TO A GRANTOR OR GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE  OR  THE
 DULY  AUTHORIZED  REPRESENTATIVE  OF A GRANTOR OR GRANTEE OF A CERTIFIED
 COPY OF ANY RETURN FILED  IN  CONNECTION  WITH  SUCH  INSTRUMENT  OR  TO
 PROHIBIT  THE  PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE
 IDENTIFICATION OF PARTICULAR RETURNS  AND  THE  ITEMS  THEREOF,  OR  THE
 INSPECTION BY THE LEGAL REPRESENTATIVES OF SUCH COUNTY, CITY, OR TOWN OF
 S. 7589                            14
 
 THE RETURN OF ANY TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR REVIEW
 THE TAX BASED THEREON.
   §  3.  Severability.  If  any provision of this act or the application
 thereof shall for any reason be  adjudged  by  any  court  of  competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation to the provision thereof directly involved in the  controversy  in
 which such judgment shall have been rendered.
   § 4. This act shall take effect immediately.